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(Reuters) – Persimmon (LON:), Britain’s second-largest housebuilder, warned on 2023 profit margins on Tuesday, after house prices deteriorated and its sales rate slipped, as the political and economic turmoil in the country and a deepening cost-of-living crisis weighed on sentiment.
Persimmon shares fell more than 7% in early trade and the company’s warning also dragged stocks of other top housebuilders such as Barratt and Taylor Wimpey (LON:) sharply lower.
Persimmon said “uniquely disruptive political conditions and deteriorating economic outlook” since September led to a steeper drop in its average sales rate to 0.48 in the last six weeks, with average selling prices falling about 2% in the same period compared with the 12 weeks from July 1.
Cancellation rates rose to 28% from 21% during the last six weeks of the period.
The company, however, did not provide any details on margin outlook adding that it was too early to provide specific guidance for 2023 given the rapid change in market conditions.
The UK housing market has been showing signs of a…
